Blockbuster Trade for Quad, Transcontinental
In the transaction, Transcontinental will also transfer to Quad/Graphics its black-and-white book printing business destined for U.S. export, which represents approximately US$25 million in sales.
As part of the Canadian transaction, Transcontinental will assume retirement pension and post-retirement obligations approximating US$75 million and acquire seven Quad/Graphics facilities (consisting of six printing plants and a premedia operation) that employ approximately 1,500 people and are forecasted to generate US$310 million of revenues in fiscal year 2011. The facilities are located in Aurora, Concord and Markham (Toronto), Ontario; LaSalle and Montreal, Quebec; Edmonton, Alberta; and Dartmouth, Nova Scotia.
According to François Olivier, president and CEO of Transcontinental, the deal "will allow us to leverage the $700 million in investments we made to our printing platform over the last several years, it will generate significant synergies and it will better equip us to face the new challenges in our industry." PI